The Government was accused by Labour of refusing to "stand up to" the energy companies as millions of households fell in to fuel poverty.
Shadow energy secretary Caroline Flint said that instead of helping, ministers were "making things worse" as a result of their decisions to cut winter fuel allowance and subsidies for solar panels.
Opening a debate on energy prices called by Labour, Ms Flint said: "This Government isn't helping, it's hurting."
 |
| Ms Flint: The Government isn't helping |
She told the Commons: "Consumer Focus say one-quarter of all households in England and Wales, 5.7 million of them, are now in fuel poverty.
"National Energy Action fear that the figure could be as high as 6.6 million, levels not seen since the dog days of the last Conservative government.
"The number of households in debt to their electricity and gas suppliers are up too. But energy companies' profit margins are still in excess of £100 per customer per year."
She continued: "Time and time again we see a Government that is not just out of touch but completely unable to stand up to vested interests in the energy industry too.
"Far from doing everything they can to help this Government is making things worse not better for millions of hard-working families.
"Their failing economic policies mean that the average family is facing the worst squeeze on income since records began in the 1950s."
Pensioners were having their winter fuel allowance cut, she said, but acknowledged that under a future Labour administration "it may be something we cannot reverse".
But she said Labour were committed to ensuring all over-75s would get the lowest tariff on offer.
The Warm Home Discount, aimed at those on low incomes, was being claimed by only 3% of eligible families, Ms Flint claimed.
"This is not about spending more money or adding to customers' bills, it is about standing up to vested interests in this sector and telling them they have a responsibility to their customers and to the public."
Ms Flint also attacked the Government's "disastrous and chaotic" cuts to the feed-in tariff for solar power.
Energy Secretary Chris Huhne said he welcomed a recent drop in the prices of EDF Energy, which fell as result in a reduction in the cost of gas imports.
 |
| Energy Secretary: Shop around |
But he said consumers needed to help themselves by shopping around for their energy and the Government was making it easier for them to switch suppliers.
He added: "Switching suppliers should be quick and easy so as part of our implementation of the EU third energy package in November we cut the time in takes to switch to just three weeks.
"Even without changing supplier, millions of households can save just by switching tariffs or payment methods. As agreed at our consumer energy summit, suppliers are placing messages on the front page of all bills to encourage consumers to phone them or visit a website to find out if they could be saving money."
Consumers could also save £100 a year if they switched to direct debit, he added.
Mr Huhne said: "We are helping through greater competition getting the consumer the best deal. We have done a lot to defend the consumer interest over the last 20 months, more than I would say that the (last Labour government) did over 13 years."
Mr Huhne said Britain needed to invest £110 billion in power plants and £90 billion in energy infrastructure over the next decade to avoid blackouts.
"We must keep the lights on in the cheapest, cleanest way to make sure households get the best deal in the long term," he said.
"We must invest now to improve our energy efficiency so we don't need to produce as much energy to keep warm and to reduce our dependence on fossil fuels in the long term so we don't have to rely on ever more expensive imports."
The Energy Secretary said ministers were "biting the bullet" rather than "delaying or dithering any longer".
He believed shale gas discovered near Blackpool, which is released through controversial "fracking", could "bring enormous prosperity" to regions rich in the resource.
"Providing all of the environmental safeguards are properly in place, it presents the possibility of a reduction in the cost of gas," said Mr Huhne.
"We are looking very closely at this and we've been in contact with the energy company involved in exploration in Lancashire and I very much hope we will be able to make progress on this."
©Press Association
©Press Association
